Stamp Duty and the 2015 Autumn Statement

Stamp Duty and the 2015 Autumn Statement
In last month's Autumn Statement, Chancellor George Osbourne announced further changes to Stamp Duty Land Tax, after changes were initially announced in 2014's Autumn Statement. Here's a quick rundown of Stamp Duty, the newly proposed changes, and how they might affect you.

Stamp Duty is a tax charged by the Government, paid by people buying land or property worth more than £125,000 in England, Wales or Northern Ireland. This tax also used to apply to land and properties in Scotland, but from April 2015, Land and Buildings Transaction Tax replaced Stamp Duty, which is a similar taxation scheme.

In 2014, it was announced in the Autumn Statement that Stamp Duty Land Tax would be calculated cumulatively, whereas previously it was charged at a flat rate of 3% for properties worth over £250,000, and 7% on properties over £2 million. This new sliding scale was introduced in order to help buyers of lower priced properties pay less tax, whilst the more expensive properties would charge a higher rate of tax.

Different rates were applied to the portion of a property worth between a certain amount, at the following rates:

Property Value

Rate of tax paid

Less than £125,000

No tax paid





£925,000-£1.5 million


More than £1.5 million


This year's Autumn Statement has announced an additional 3% surcharge on properties that are being bought as buy-to-let homes or second homes. This has been done in order to give those buying their first home or moving house more of a chance in the property market. This change will come into effect from 1st April 2016.

This change has the biggest effect on landlords, who have already taken a hit to their profits through the loss of buy-to-let tax relief. This surcharge will result in much greater expenses for landlords, meaning some may end up having to sell properties to make up for it, and some may increase the amount of rent they charge their tenants, having a knock-on negative effect to anyone renting properties.

Another consequence of this change is that landlords and those seeking second homes may all rush to purchase properties before the change takes place next April, in order to avoid paying this extra portion of tax on their properties.

If you would like any more information or advice about the new changes to Stamp Duty Land Tax and how they might affect you, give us a call on 0115 956 9452 or email This email address is being protected from spambots. You need JavaScript enabled to view it..

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